Peloton Reduces Workforce by 11% in Cost-Cutting Move

• The layoffs represent approximately 286 positions based on Peloton's reported workforce of more than 2,600 employees as of June 30, 2025
• CEO Peter Stern, who assumed leadership in 2024, informed staff of the cuts on Friday, with engineering teams bearing the brunt of reductions
• The workforce reduction is part of broader turnaround efforts and comes ahead of Peloton's quarterly earnings report scheduled for next week

Summary

Peloton Interactive Cuts 11% of Workforce in Cost-Reduction Effort

Peloton Interactive has eliminated 11% of its workforce as part of ongoing cost-cutting measures under its turnaround strategy, according to Bloomberg News on January 30. The layoffs primarily affect engineers working on technology and enterprise-related projects.

Key Facts:

• Workforce Impact: Based on Peloton's annual filing showing over 2,600 employees as of June 30, 2025, the cuts represent approximately 286 positions
• Leadership: CEO Peter Stern, who assumed leadership in 2024, announced the decision to staff on Friday
• Timing: The announcement comes ahead of Peloton's quarterly earnings report scheduled for next week

Company Context:

The fitness equipment maker continues restructuring efforts under Stern's leadership, who has been implementing various operational changes since taking charge. This marks another significant strategic move as the company works to stabilize its business model and reduce operational expenses.

Market Implications:

The layoffs signal continued financial pressure on Peloton as it struggles to return to profitability. The focus on cutting engineering and technology roles suggests a potential shift in the company's innovation and development priorities. Investors will be closely watching next week's earnings report for further insights into the company's financial health and the effectiveness of its turnaround strategy.

Peloton has not provided official comment on the workforce reduction. The move reflects broader challenges facing the connected fitness industry as demand normalizes following pandemic-era peaks.